GOOD OVER EVIL – The 10 Money DEMONS
With Dusshera having been celebrated a few days ago and Diwali soon following up, with thought it only but makes sense to address 10 everyday mistakes we make with our money.
1) Rolling Credit – Often we do not realise and let monies roll over on our credit cards. An average credit card charges an interest of upto 3% on it which translates to a whopping 36%+ annually! . Pay off the debts as soon as you can/ do not use your credit card for small expenses.
2) Under insure ourselves – Yes, it is a good service to society to your friends / colleagues/ uncles etc to buy insurance policies that they sell . While you are helping them and accumulating multiple policies, the only person who is getting affected is you. Do a due diligence with the help of a qualified advisor to analyse how much insurance you actually need/ how many policies you actually need and then buy them as per actual requirement.
3) Not making your money work for you – Often large amounts of money are lying in bank accounts put to no use / saved in your savings bank account. These can be as easily available to you, using other investment tools. Write to us at : firstname.lastname@example.org for such options.
4)Not reviewing investments:often we invest in equities/ tax saver funds that we do not review over periods of time and regret those investments made. While it makes sense to stay invested in any equity linked investment for a minimum of 3 years it only makes sense to review these once in 6 months to watch and analyse the peer group performance v/s this investment.
5) Not securing your health: as we all know , treatment of health costs are only increasing and small things that could have been better avoided are slowly eating up our healthy lives and money. Cholestrol, sugar , High BP are now hitting people in their 20’s which they usually hit people in their 40’s. TAKE A WALK!- yes I mean seriously, get off your mobile , your laptop, your tablet and take a real walk! and if you do not want to do that , make sure you have adequate Health insurance. An average adult should have a health insurance cover of atleast 5L Rupees and a child for Rs 3L atleast. These should be reviewed every 2 years and increased keeping in mind increasing costs.
6) Not saving systematically: Investments should be made systematically and in a discipline manner. Fix an amount of your salary that is saved a day or 2 after you receive your salary. Commit to an investment and stick to it ! ( Don’t forget to review this).
7) Not enjoying your spendings: while it is important to save before you spend, it is also important to savour and enjoy your spendings! Save small and regularly towards the small and big goals and spend that money prudently and enjoy spending your wealth.
8)Not creating a contingency fund : let’s face it ,we all need a contingency fund, it could be a medical emergency or a sudden holiday or a big purchase. If your monthly expenses are Rs 20,000, atleast 3 months expenses , i.e Rs 60,000 should be kept in an investment to reach out to.
9)Creating discord: With our daily lives getting awfully stressful and leading to discords at our work and personal lives we also automatically create a discord in our investments. They turn as volatile as our moods, let’s be honest, we can’t handle everything. Our investments are as sensitive as our health. While we go to a doctor to solve our medical condition ( google can’t solve everything) , we also need a specialist for our investments who can cure the disharmony of our mind and money. Get in touch with a suitable advisor to help you spend your money! 🙂
10)Don’t stop asking questions: At the end of the day , it is our money, your blood and sweat , 10-18 hours of work everyday translating to an income translating to savings. While you are entering an investment, do not fail to ask the advisor/ agent questions! and if he is prudent and qualified you will get all your answers.
Do write to us if there is any subject that you want us to address in particular